Advantages and Disadvantages of Internet Banking and IFSC Code

Banking sector has been revolutionized over the last decades. The era of digitalization has completely transformed the world of banking. It’s hard to imagine a time when the simple task of checking your bank account balance required a trip to bank. Through Internet banking, you can check your account balance, transfer funds and more within a fraction of seconds, right from your smartphones or laptops. Thanks to the massive advancements in technology that marked the beginning of the new era of banking sector which have given their customers easy money transfer methods like NEFT. NEFT or National Electronic Funds transfer facilitates transfer of funds to other bank accounts across the country in the quickest possible time.

Reputed institutions like ICICI and HDFC also offer Internet banking and NEFT transfer. Procedure is quite simple for making a transaction. First you need to create a user id on the official website of your banking institution and then add the IFSC code. After you’ve added the beneficiary, you’re ready to do the cash outflow or inflow. 

Advantages of Internet Banking

Convenience

Now you don’t have to stand in those unending queues to pay off your bills. Internet banking offers a great convenience as you can transfer money and pay your bills from the comfort of your home. It is available 24x7. The only thing you require is an active internet connection and then you’re ready to perform your task from anywhere and at any time. Now you don’t have to sort through a pile of bills to find an old receipt as you can easily keep a track of all the transactions through internet banking. 

Safe and efficient

Through internet banking you can easily monitor your account anytime. You get to know about the data breaches or any other threat to your bank account before it creates any severe damage to your money. You can easily keep an eye on your cash inflow and outflow and on your account balance. This facility helps keep your account safe. Banking sector initially has never been a fast and efficient process. The evolution of internet banking has improved the efficiency of banking process. Managing several accounts through internet banking is also easy. 

Low processing charges 

Internet banking is very economical as the processing fee is very low. This facility doesn’t require a reimbursement of huge sum of money. It’s a very flexible banking option through which you can transfer money without any haphazard. 

Highly dependable 

Most of the banks are regulated under the norms set by the central bank i.e. Reserve Bank Of India. Hence, the internet banking is highly dependable for making payments and transferring funds across accounts.

However, as the banking industry evolved and gained mainstream popularity, it also faces major threats. Fraudulent activities are becoming more common and harder to stop. While technology has improved the banking industry dramatically, it has also been exposed to massive challenges which users must be aware of and on guard against. 

Disadvantages of Internet Banking

Security Risks 

No matter how secure a bank’s system might be, it is never safe from fraudulent activities like data breaching and hacking. Criminals will always find a way to exploit a bank account. No bank is immune from cyber- attack. Even if your bank’s website claims that it’s secure, you should always proceed with caution. All banks have security holes. 

Highly technical 

Some people might not feel comfortable with the highly technical methods of fund transfer. If you’re new to the internet banking, it will take you some time to get used to it. People with a little knowledge of computer might get frustrated while learning the complex procedure of internet banking. Banks also keep updating the site with new features which requires additional learning. When you need help, you have to wait for a long time to connect with a customer service official. 

However, the facility of internet banking is way more convenient than visiting a traditional bank but still this facility needs to be used very carefully to save your confidential information from the fraudsters. If you ever fall in the trap of a cyber fraud chances are that you’ll never see your money again.